CMOC Group Ltd., the world’s leading cobalt producer, has blown past its full-year production target in just nine months, producing 84,722 tons of cobalt from its African operations through September 2024. This output has already exceeded the company’s original upper guidance of 70,000 tons for the entire year, according to the company’s third quarter earnings report.
The dramatic increase in production has contributed to a global oversupply, pushing cobalt prices to their lowest point in eight years. CMOC, which overtook Glencore Plc as the world’s largest cobalt supplier in 2023, has achieved this remarkable output through expansion of its operations in the Democratic Republic of Congo.
The company’s success extends beyond cobalt production. Copper output, of which cobalt is a by-product, saw a 78% increase in the first nine months, with potential to reach 600,000 tons by year-end if current production rates continue. This contributed to a strong financial performance, with third-quarter net income rising 64% year-over-year to 2.9 billion yuan ($410 million), while revenues increased 16% to 51.9 billion yuan.
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CMOC continues to expand its presence in central Africa’s copper belt, initiating preliminary exploration work in the western area of its Tenke Fungurume mine and phase two of the Kisanfu project. The company has also strengthened its strategic partnerships, signing a three-year supply agreement with Contemporary Amperex Technology Ltd. (CATL), the global leader in battery manufacturing and CMOC’s second-largest shareholder.
The partnership with CATL has already shown significant growth, with CATL’s purchases from CMOC more than doubling in the first eight months of 2024 compared to all of 2023, reaching $546 million. These purchases primarily consisted of nickel products, demonstrating CMOC’s expanding influence in the battery metals supply chain.
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